Elsewedy Electric up 7% in revenues, down 20% in net profits

Doaa A.Moneim , Tuesday 27 Aug 2019


Elsewedy Electric, Wires and Cables and Integrated Energy has recorded revenues of EGP 21,553.6 million, up 7 percent year-on-year in the first quarter of 2019, according to the company’s statement.

The company’s net profit fell by 20 percent, down to EGP 1,888.1 million, yielding a net profit margin of 8.8 percent.

Wires and cables revenue remained largely unchanged y-o-y.Overall top line growth was driven primarily by the turnkey projects segment, the second-largest contributor to revenue, which grew by 25.2 percent y-o-y, according to the company’s earnings release.

Meanwhile, gross profit saw a 4.6 percent y-o-y high as it increased to EGP 3,561.6 million in the first half of 2019, while the company’s gross profit margin remained steady, between 16.5 percent and 17 percent.

Earnings before interest, tax, depreciation and amortization (EBITDA) decreased to EGP 2,726.6 million in H1 2019, yielding an EBITDA margin of 12.7 percent compared to 14.2 percent in 1H 2018.

“With an eye to making tangible headway to broadening the geographies from which we generate value, Elsewedy Electric has moved to acquire four companies in Greece – three wind and one hydro-electric energy company – for a total consideration of €55 million from R.F. Energy S.A, a subsidiary of F.G Europe S.A. Additionally, we receive the 15 percent down payment for the construction of a hydroelectric dam and power station in Tanzania, a joint venture with the Arab Contractors,” company CEO Ahmed Elsewedy said.

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